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AN EFFECT OF HALAL’S DIMENSIONS ON SUBSCRIPTION TO HALAL RESTAURANTS IN

JAKARTA

Andika Nuraga Budiman*, Hilma Suyana, Ely Nurhayati

[email protected], [email protected], [email protected]

Abstract: This research objective is to investigate the influence of Halal dimension towards subscribing Halal restaurant. This research objective is to investigate the influence of Halal dimension towards subscribing Halal restaurant. This research method was using questionnaire spread to 169 respondents in Central Jakarta area in Cempaka Putih. The purposive sampling with especially for Muslim was absolute condition to become this research samples. The result shows that interesting result that Muslim in Jakarta, which is we expecting these results are representing majority of population, evidently our respondents are not paying attention in Halal process before they visiting restaurant, which is one of the process is animal slaughtering process. An explanation of the relationship between Halal certification and subscribing. Halal restaurants have a significant relationship. apart from the regression results, the results of the T test have explained that the existence of Halal certification is very important. Also, Halal accreditation and their awareness need to be improved, there is not significant toward subscribing Halal restaurant. The main part is a religiosity which is a very strong religious status for Muslims; this is one of the reasons why Muslims always subscribe to restaurants because they believe wherever there is a religious status that is still firmly held.

Keywords: Behavior; halal; restaurant; Muslim; certification

Received Revised Accepted Published

March 6, 2022 August 3, 2022 September 30, 2022 September 30, 2022

To cite this article: Budiman, A.N., Suryana, H., Nurhayati, E. (2022). An Effect of Halal’s Dimensions on Subscription to Halal Restaurants in Jakarta. IJIBE (International Journal of Islamic Business Ethics), 7 (2), 138-148. http://dx.doi.org/10.30659/ijibe.7.2.138-148

INTRODUCTION

Customers, particularly Muslims, are increasingly demanding and selective in determining the products they want to consume. The situation becomes contemplative when purchasing decisions involve halal food products. Many factors are believed to contribute to this phenomenon. Among other things, factors such as increased awareness, higher levels of education, increased product availability, and increased income levels are believed to influence the purchase intention of customers (Othman, et. al, 2020). Customers, especially Muslims, are increasingly demanding and choosing in determining the products they want to consume. The situation becomes contemplative when purchasing decisions involve halal food products. Many factors are believed to contribute to this phenomenon. Among other things, factors such as increased awareness, higher education levels, increased product availability, and increased income are believed to influence why they subscribe to Hamzah et. Al. (2020). Basically, the important role of Halal awareness, halal certificate, and related

*Corresponding Author

Faculty of Economic and Business, University of YARSI, Jakarta, Indonesia

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to halal marketing is a worthy thing in determining the importance for a Muslim to always interact with what they consume. As customers become more sophisticated, the owner of the restaurants needs to be more focused on the quality of their products, which requires emphasis on the service, food and drinks of halal products. Saaidin et al., (2016) wrote that the preparation and handling of Halal food is based on quality, sanitary and safety considerations and these are the fundamental requirement for food products and trade in Malaysia. This means that the products and services used for front of the house and back of the house must be strictly in accordance with the Syariah requirements. This is significantly prompting consumers’ buying intention.

Halal restaurant (food service) a location that has been based on the Toyyiban Halalan concept (allowed and good for consumption) namely not only serving food and drinks that have been permitted by Islam but must be "good" that contains good nutrition for human health as well. This concerns the food production process from animal husbandry (animal slaughter) to food service, which involves preparation and serving (e.g., pork and alcohol- free ingredients, food hygiene,) as prescribed by Sharia (Ab Hamid et al., 2016).

Past studies have tended to be narrow in scope because they dealt with attitudes or purchase intention and mostly focus on Halal products (eg, Mukhtar & Butt (2012); Hamdan et al., (2013)). Because the scope of the Halal industry includes services including Halal restaurant, this study explores how a Muslim can subscribe to a restaurant only with the influence of the Halal dimension. While it can be seen, in Indonesia, there are several problems regarding the misuse of Halal certificates, such as what was found by Fitriantini (2014) which caused hotel and restaurant owners not to take care of the MUI (Indonesian Ulema Council) certification and try to solve the problem. In Fitriantini's research (2014), out of 803 restaurants, only 6 restaurants have Halal certification, and one restaurant does not renew Halal certification.

Fitriantini (2014) argues that the factors that cause this problem are high payments, complicated management processes, only inspected departments, and low socialization from MUI, MUI plays a very important role in providing Halal certification, especially for hotels and restaurants. It is still difficult to convince if the chef in a Muslim restaurant uses Halal raw materials, then the food is said to be Halal food (Fitriantini, 2014). However, Indonesian consumers still prefer to subscribe to restaurants in Indonesia regardless of whether it is Halal or non-Halal. (Liputan6.com) Jakarta, the halal label in each restaurant is a symbol of the food being sold, from raw materials to procedures, all according to Islamic faith.

According to online data from the Central Indonesian Ulema Council (MUI) LPPOM, there are only 5,663 halal-certified restaurants in Indonesia. It states that there are still many restaurants that do not have a halal certificate, especially roadside food stalls with various reasons that there are various reasons why roadside food stalls do not have a halal certificate.

LPPOM MUI was not able to cope with this incident because it could only make an appeal, because the nature of Halal certification is voluntary.

However, Halal research that has been carried out in Indonesia has used Ajzen's Theory of Planned Behavior and Theory of Reasoned Action (1991) (Rohmatun & Dewi, 2017; Endah, 2018; Kangdekang & Linarti, 2020; Aditami & Soepatini, 2016). However, this research provides a fairly broad scope in Halal certification, Halal Accreditation, Halal Awareness, Religiosity and Halal Marketing. The lack of studies in this aspect, especially

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in the country, makes it difficult to ascertain what factors are the most important in influencing consumers to subscribe to Halal restaurants.

LITERATURE REVIEW

Halal Certificate

Halal certification is a security guarantee for a Muslim consumer to be able to choose food that is good for him and in accordance with religious rules. The MUI Halal Certificate is a written fatwa of the Indonesian Ulema Council which states the halalness of a product in accordance with Islamic law. This MUI Halal Certificate is a requirement to obtain a permit for the inclusion of a halal label on product packaging from an authorized government agency (Hayani, 2019). According to Al-Quran Surah Al-Baqarah verse 168 states the basic principles of halal certification itself are halal (permitted) and thoyyiban (useful). This illustrates for Muslims in the world that anything that enters the body must be legal according to Islamic law and be beneficial for itself.

Halal certificate is a certification issued by the Institute for the Study of Food, Drugs and Cosmetics of the Indonesian Ulema Council (LPPOM-MUI) which states that a product is in accordance with Islamic law. This halal certificate can be used for making halal labels.

Based on government regulation number 69 of 1999, regarding halal labels and food advertisements are any information regarding food in the form of pictures, writings, a combination of both or other forms that are included in food, inserted into, affixed to and or are part of food packaging (Government Regulation No. Republic of Indonesia Number 69 of 1999 concerning Food Labels and Advertisements).

Halal Accreditation

These relevant ministries or institutions include ministries or agencies that carry out government affairs in the fields of industry, trade, health, agriculture, standardization and accreditation, cooperatives, and micro, small and medium enterprises, as well as drug and food supervision. The government issued a Government Regulation of the Republic of Indonesia Number 69 of 1999 concerning Food Labels and Advertisements explaining the installation of Halal Labels on packaging which must first go through an inspection by an accredited inspection agency based on the guidelines and procedures set by the Minister of Religion (Afroniyati 2014).

The truth of the statement of halal on a food label is not only proven in terms of raw materials, food additives, or auxiliary materials used in producing food, but must also be proven in the production process. To support the truth of the statement of halalness, every person who produces or imports packaged food into the territory of Indonesia for trading must first conduct a food inspection at an accredited inspection agency in accordance with the provisions of the applicable laws and regulations (Chairty. 2017).

Awareness

Awareness is the ability to perceive, feel, and become aware of events and objects.

Consciousness has been hypothesized as an important role in determining intention to vote (Aziz & Viu, 2013: 7). Indonesian consumers have paid attention to the halal label. This is

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evidenced by the increase in sales after the halal label. In 1988 the problem of lard emerged which caused a significant decrease in sales turnover of several food products. In addition, issues related to the mixing of beef with pork in meat and processed products such as meatballs, formalin chicken and so on have triggered the awareness of the Indonesian people in choosing halal and good food (Windikusuma, 2015: 14).

An awareness in a Halal food context can partially reflect a condition where a consumer has an interest, special attention, or has an experience and information about a good image about food that is allowed by Islamic law (Ambali and Bakar, 2014). An awareness of Halal reflects the stage of the buying process, where consumers who initially do not know the product, then know it. Without knowledge of the product, there is a high possibility that consumers will not want to buy it (Kertajaya and Ridwansyah, 2014).

Religiosity

An Islamic religious teaching defines religion as not only related to spirituality, but religion is a set of beliefs, rules, and regulations as moral guidelines for every aspect of human life. It is clear that Halal food and drinks are allowed/permitted, while the opposite is haram (P3EI Writing Team, 2013; Ambali and Bakar, 2014). Previous research has shown that religious belief (religiosity) is a potential source of Muslim awareness regarding Halal consumption (Ambali and Bakar, 2014). Awareness is the ability to perceive, feel, and be aware of events and objects. Halal awareness according to (Ahmad, et.al., 2013) is known based on whether or not a Muslim understands about halal, knows the correct slaughter process and prioritizes halal food for them to consume. According to (Pambudi, 2018). Halal awareness is the understanding of Muslims towards the concept of halal, halal processes, and halal principles which ultimately prioritizes halal food for consumption. If someone understands the concept of Halal, the process, and principles of Halal, then Muslims tend to be more selective in choosing the products they will consume. Based on the above understanding, it can be concluded that halal awareness is Muslim knowledge about the concept of halal, the halal process and considers that consuming halal food is important.

Muslim Behavior

The Indonesian Muslim community still does not pay attention to the halal and haram of all food ingredients (food and drinks) that are consumed. This issue is actually the responsibility of each individual to be more selective in choosing the food and drinks consumed, besides the rules regarding consumer protection (Muslims) from products that are still in doubt. If you look closely, it turns out that not all food and beverage products are guaranteed to be halal. Therefore, this is where the urgency of public awareness is needed to pay attention to the ingredients consumed. In connection with the halal-haram of a product or material consumed by the Muslim community, the Indonesian Ulema Council (MUI) has established a Food, Drug and Cosmetics Study Institute (LPPOM) which aims to protect Muslim consumers from food products, beverages, medicines, and Cosmetics with questionable halalness. The agency is tasked with providing halal certification of a product after going through an assessment (Yani & Suryaningsih, 2019).

The problem is, in Indonesia, not everyone (Muslim) always pays attention to the halal label which is usually affixed to a product, including food and beverages. It seems that

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not all of them have a concern for this, therefore the Government in this case the Ministry of Religion of the Republic of Indonesia assisted by the Indonesian Ulema Council (MUI) needs to provide information to the public about the importance of choosing a product, including food and beverages by paying attention to the halal label, not indifferent.

indifferent, meaning that every Muslim has a responsibility for how important it is to pay attention to the basic principles of Islamic life (Yani & Suryaningsih, 2019).

METHODOLOGY

Research Design

The type of research to be carried out is quantitative research using instruments in the form of questionnaires and measurements with an ordinal scale. This research is designed as a survey which is a type of field study. This sampling method is by using purposive sampling. because this study considers a Muslim who has at least once or owned a restaurant that is subscribed to by him. So that the respondent's criteria in this study are a Muslim who comes from or resides in Jakarta who has or has subscribed to Halal restaurants. Besides, this study recommends to respondents who understand and understand Islamic rules that the rules for consuming food and drinks are obligatory for Muslims.

The population in this study was taken from consumers who subscribe to Halal restaurants located in Central Jakarta, East Cempaka Putih. The population of eastern Cempaka Putih is around 90,564 people (2018) but the exact number of residents in 2021 is uncertain. So that the number of samples taken in accordance with the sampling technique with Morgan's theory is 178 respondents with 180 respondents rounding up. The data that will be used in this research is quantitative data by collecting questionnaires. Data was collected using a survey method, distributing questionnaires containing statement items measured by a Likert scale. The statements of course have been designed according to the indicators of each variable. The distribution of the questionnaires was carried out online or face-to-face by first asking the willingness of prospective respondents.

This research framework has been designed and adapted to the Halal dimension and linked to Halal restaurant subscriptions in order to obtain relevant results regarding the relationships between variables. The independent variable in this study is the Halal dimension in which the Halal dimension in this study is divided into five independent variables, namely, halal certificate, halal accreditation, awareness, religiosity, and Muslim behavior. And the dependent variable in this study is subscribing to halal restaurants. Each independent variable is connected to the dependent variable so that it has five hypotheses and one hypothesis for the relationship simultaneously.

This study also uses primary and secondary data, where the primary data in this study is through surveys, interviews and distributing questionnaires in the field. Secondary data used by this research is through previous research, journal publications, magazines and websites. By taking probability sampling, this research can ensure that each respondent has the feasibility and meets the requirements to be a suitable sample for this study, with the important condition that he must be a Muslim.

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Figure 1: Framework

This study has several hypotheses that have been designed in such a way as to focus on the influence of the Halal dimension on consumers who subscribe to Halal restaurants. The following is the research hypothesis:

H1: There is a significant relationship between halal certificates and subscribing to halal restaurants

H2: There is a significant relationship between halal accreditation and subscribing to halal Restaurants

H3: There is a significant relationship between awareness and subscription to halal restaurants

H4: There is a significant relationship between religiosity and subscribing to halal restaurants

H5: There is a significant relationship between Muslim behavior and halal restaurant Subscriptions

H6: There is a simultaneous relationship of each halal dimension to restaurant subscriptions

The first variable from the Halal dimensions is the Halal certificate where the indicators are; visibility of Halal certificates and labels (Shaari & Ariffin, 2010). Next, the second variable is Halal accreditation, where the indicators are a Halal guarantee and the authentication of the Halal logo (Shaari & Arffin, 2010). The third variable is awareness, a Muslim awareness of the importance of consuming food and beverages that have indicators, a religious obligation, and the production process (Shaari and Ariffin, 2010). Indicators for religiosity are belief and worship (Glock, 2014). Indicators for Halal Marketing based on the marketing mix, namely, product, place, price, and promotion.

The data analysis that will be used is descriptive analysis to find the profile of the respondents and their variables. Furthermore, by using the Data Quality Test to find out the quality of the questionnaire that is feasible or not. Furthermore, by using the classic Assumption Test to find the normal distribution of data. Finally, this study will conduct a Hypothesis Test in finding out the results of the relationship between the variables.

Subscribing Halal Restaurant Halal Certification

Halal Accreditation Awareness Religiosity Muslim Behavior HALAL DIMENSION

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FINDINGS

Respondents’ profiles

Questionnaire questions have been adapted as questions that focus on all the variables in this study. Starting from the service quality perception instrument that has been adapted from the research of Dali, et al. (2007). Furthermore, the consumer attitude question instrument is referenced from Firman's research (2010), and the Halal restaurant subscription question instrument is referenced from Prasad's research (2012). The following are the results of the descriptive analysis of the research. This research has found variance of result by descriptive analysis, first; The result of respondent’s profile is consisting by 41 males and 128 females of respondent. Second, the ages range from 18-25 years old is 123 respondents; 26-35 years old is 20 respondents; 36-44 years old is 15 respondents; 45-50 years old is 11 respondents. This result explained, the youth respondents are interested in this result even we were giving them questionnaire in random ranges.

The variables descriptive results are shown by each variable. The first variable is Halal certification, from the cumulative mean is 3.71 which we refer to our Likert scale was only four option to avoid bias result. This score is indicated our respondents tend to agree for Halal certification existence, because this is completing Muslim to consume food and beverage. Next; the accreditation, the finding indicated that 3.58 was quite strong for explaining the importance of Halal accreditation for Muslim. We found that Muslim’s awareness in the score of 3.49; however, we found interesting result that Muslim in Jakarta, which is we expecting these results are representing majority of population, evidently our respondents are not paying attention in Halal process before they visiting restaurant, which is one of the process is animal slaughtering process. Following their religiosity is average on 3.52; even their awareness about the importance of Halal process is less, but their religiosity is quite impressive. lastly 3.79 for Muslim Behavior is impressively highest score in these results.

Normality

According to these variables in the study, we used the One-Sample KS test to measuring questionnaire speared. Hence, we used P-plot to support the results. We found that the questionnaire spread is normal, the reason is we targeting to Muslim and same coverage area. We measured all independent variables toward subscribing Halal restaurant which is Halal dimension play important role of it. The result of this test in Asymp.sig. (2- tailed) was 0.342. then, according to the basis of decision making in the normality test, it can be concluded that the data are normally distributed. thus, the assumptions or requirements for normality of the regression model have been met.

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Figure 2. Probability Plot

Based on the chart above, it can be seen that the plotting points follow and approach the diagonal line, which means, as the basic guideline for decision making on the P-plot normality test, it can be concluded that the residual values are normally distributed.

Factor Analysis

This study found from all items in questionnaire are represented nine factors. We grouped each item into the groups. These group are measured by categories, types, and characteristic which is looks similar by one to another. For example, if we find items that are similar, but we put those items to other variables; so, what we suggest is that the use of items will be used for further research so that this grouping can be well targeted. In this study, there were no errors in the placement of statement items in each variable. As for what we found, there were two items that were not strong enough to represent a single variable.

Therefore, we decided to remove the item and reprocess the data until it reaches our desired target.

The results of cross-loading indicate that there are nine components contained in this study, for the most important component (1); is a component with a majority belief in

Table 1: Component Matrix

1 2 3 4 5 6 7 8 9

Islamic self-esteem .829 .069 .011 .122 -.059 .120 .050 .175 .083 Animal slaughtering .018 .820 .144 -.017 .167 .118 .096 .073 .199 Restaurant’s Halal logo -.073 .116 .831 .002 .068 -.246 .109 .136 -.096 Obligation of subscribe .130 -.029 -.043 .759 .007 .320 -.011 .046 -.017 Religious view .014 .048 -.012 .008 .806 .107 -.018 .004 -.013 Undoubted Halal logo .081 .174 -.023 .035 .143 .832 .042 .091 .005 Halal clarity .055 -.016 .118 .062 .023 .076 .807 -.115 .126 God’s command .360 .103 .110 .004 .079 .093 -.131 .767 .048 Halal Quality .128 .091 -.022 .010 -.034 .003 .121 .064 .863

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religion; elements that contain the teachings that have been given in Islam. Furthermore, the next component (2) is the items that contain the principle of halal, where this element can be said to be several implementations of Halal practice. the third is a component related to the restaurant to Muslim perceptions (3). Next, the elements that contain an obligation for a Muslim to carry out one of the rules (4). The fifth (5) is a component that contains Islamic views. The sixth (6) and seventh (7) is a component that each contains a connection with the Halal logo. The eighth is a commandment from God for Muslims. Lastly, is a quality of Halal Dining from the Restaurant.

Hypothesis Tests

We found something from the results of hypothesis testing that investigates the effect of each independent variable on the dependent variable. We have designed Halal certificate, accreditation, awareness, religiosity, and Muslim behavior on the independent variables. an F test has obtained a result of 27.65 is the F result of the value of the simultaneous X which is greater than 2.21 (F table). Meanwhile, the R result from this research is 45.9%, meaning that we can conclude that the R value has that much influence on subscribing to Halal restaurants.

Table 2: Hypothesis Test Results

Variables T T table Hypothesis

Halal certification 2.443 1.980 Accepted

Halal Accreditation .686 1.980 Rejected

Awareness .721 1.980 Rejected

Religiosity 6.217 1.980 Accepted

Muslim Behaviour 2.064 1.980 Accepted

Hypothesis testing in this study has obtained interesting answers. a test of the relationship of each independent variable with the dependent variable has obtained some significant or no relationship. An explanation of the relationship between Halal certification and subscribing. Halal restaurants have a significant relationship. apart from the regression results, the results of the T test have explained that the existence of Halal certification is very important. The relationship between Halal accreditation and restaurant subscriptions is one that has no effect, this result should be due to the misuse of the Halal symbol that has occurred in Indonesia. The impact that occurs is that many people question this. A domino effect also occurred in the awareness of Muslims towards the use of the Halal symbol in restaurants. an interesting thing happened, it turns out that Muslims in Jakarta are very aware of religiosity, this makes the status of Muslims there to be stronger; the existence of this status makes a Muslim will have to carry out one of his obligations. Also, their behavior is quite significant enough for influencing Muslim subscribing Halal restaurant.

CONCLUSION

Halal is a symbol that explains that what Muslims consume is something that has been permitted. In accordance with government regulations through Law no. 33/2014: The Government Must Form a Halal Product Guarantee Agency. then there should be no more problems. In fact, there are many debates due to the difficult management of Halal certification procedures. This makes a lot of abuse of Halal that occurs, besides that the

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choice of cheap and easily available food on the streets is also an option for the community.

Where the street food there is almost all of them do not use Halal certification. But they still consume it without any worries or doubts. This phenomenon has been supported by the results of this study which has answered several non-influenced relationships such as Halal accreditation and Muslim Awareness of Halal. But the main part is a religiosity which is a very strong religious status for Muslims; this is one of the reasons why Muslims always subscribe to restaurants because they believe wherever there is a religious status that is still firmly held.

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